Why would a school or business want/need to spend money on an iPad Air?
For the same reasons they spend money on updated computers/textbooks etc.
Every piece of technology has a lifespan. After X amount of time the hardware starts to degrade, the manufacturer stops producing/updating software for it, etc.
Let's just assume for argument that the iPad has a relevant lifespan of 5 years. That is, the original iPad 1 (2010) will end it's lifespan in 2015 (I know, I know, most would say it's already done, but just stick with me)...
Why would a school or business buy technology that was introduced in 2011 (dead in 2016) when, for a tad bit more, they could buy the latest technology and not have to re-purchase until 2018?
This logic is even far shorter than the obvious, real-world situation that my wife is in. Her employer is going to buy her an iPad air (she works at a university). They TEACH technology and NEED the latest technology to be able to teach it. Plus, who's to say that some apps won't start taking advantage of that new processor sometime in the next 5 years? Wouldn't that be awesome to "cheap out" and buy the whole school iPad 2 models and then suddenly there's an app that takes full advantage of the new processor but wait -- "we don't have those..."
It's not ALWAYS necessary to have the latest and greatest but I'd venture a guess that in an educational setting and probably most business settings it would be best.